Results and Reports

Full Year Results

23 May 2017

Strategic plan progressing well with good growth from Identity Solutions and Product Authentication

  • Group revenue +2% and adjusted operating profit up marginally year on year
  • Resilient performance in our Currency business, improved mix in Banknote Print and increased Paper volumes partially offsetting the impact of a concluded security features contract
  • Identity Solutions revenue +5% and adjusted operating profit +37%
  • Product Authentication & Traceability revenue +20% and adjusted operating profit +29%
  • Net debt up £14.8m to £120.9m following the $25m acquisition of DuPont Authentication
  • Proposed final dividend of 16.7p; Full year dividend maintained at 25.0p
  • Group 12 month order book of £387m providing good visibility and confidence for the year ahead

Optimise & Flex

  • Banknote Print volumes similar to last year at 7.1bn notes
  • Banknote Paper volumes increased by 18% to 11,800 tonnes, a seven year high
  • Restructuring of print manufacturing footprint on track to deliver c£13m annual cost savings from FY18/19 – two banknote print lines removed in Malta; retaining third line for operational flexibility

Invest & Build

  • Accelerating product development through increased investment in R&D and product management
  • Good momentum in Polymer continues – volumes nearly quadrupled to 380 tonnes
  • Completed acquisition of DuPont Authentication, further broadening our portfolio of security features to include highly specialised Lippmann 3D Holograms Centre of excellence for security print opened in Malta, including new capability to produce polycarbonate - first volume customer secured

The figures below are for continuing operations only and exclude the Cash Processing Solutions business which was sold on 22 May 2016.

Revenue 461.7 454.4 2%
Adjusted operating profit*(1) 70.7 70.4 0%
Adjusted operating margin*(1) 15.3% 15.5% (20bpts)
Reported operating profit 70.2 66.8 5%
Adjusted profit before tax*(1) 58.7 58.5 0%
Reported profit before tax 58.2 54.9 6%
Adjusted basic earnings per share*(2) 47.1p 48.1p (2%)
Reported basic earnings per share 47.2p 46.8p 1%
Dividend per share 25.0p 25.0p 0%

* This is a non-IFRS measure. The Directors are of the opinion that these measures give a better understanding of the underlying performance of the business. For further explanations and reconciliation to the comparable IFRS measure see reconciliation in note 14. “Reported” measures are on an IFRS basis.

(1) Excludes exceptional item charges of £0.4m (2015/16: £3.6m) and amortisation of acquired intangible assets of £0.1m (2015:16: £nil). 
(2) Excludes exceptional item charges of £0.4m (2015/16: £3.6m), amortisation of acquired intangible assets of £0.1m (2015:16: £nil) and related tax credits of £0.6m (2015/16: £2.3m). 
Revenue and adjusted operating profit growth rates for the Identity Solutions and Product Authentication reflect a change in allocation of results for these segments made in the year. See “Operating reviews” section for further details.

Martin Sutherland, Chief Executive Officer of De La Rue, commented:

De La Rue has delivered a good performance this year. We are two years into our five year strategic plan and have made solid progress against our objectives to diversify the business and improve the quality of earnings. Identity Solutions and Product Authentication are both delivering good growth and are underpinned by the resilience of our Currency business.

“Our investment in product management and R&D has seen us introduce six new products into our pipeline, including DLR Analytics, a software solution to help central banks manage their cash cycle requirements. We are already piloting with 26 countries at launch.

“In January, we completed our first acquisition in 14 years. DuPont Authentication is a business with a strong intellectual property portfolio, global blue-chip customers and a committed and experienced workforce. This transaction further strengthens our position in the strategically important and growing product authentication market.

“With continuing good momentum in delivering our 2020 strategic plan and a strong 12 month order book of £387m, I am confident that we will deliver on our expectations for the year.”

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